PERSONAL FINANCIAL BEHAVIOR AMONG STUDENTS: THE CASE OF UITM MELAKA
UNIVERSITI TEKNOLOGI MARA 78000 ALOR GAJAH, MELAKA
MALAYSIA
BY:
ZARINAH ABU YAZID SHAHREENA DAUD NUR ASYIRA NAZIRON
SEPTEMBER 2012
ACKNOWLEDGEMENT
We would like to express our special gratitude to Research Management Institute (RMI) of UiTM for providing us the grant to begin and carry out this one year study.
Sincere thanks to Datuk Prof. Madya Dr. Mizan Hitam (Rector of UiTM Melaka) and Prof. Madya Dr. Roaimah Omar (Deputy Rector of PJI UiTM Melaka) for their
kindness and moral support.
Finally yet importantly, our utmost gratitude for the respondents who have participated and gave a sincere response to the completion of this study.
Thank you very much!
vi
Table of Contents
Letter of Report Submission iii Letter of Offer (Research Grant) v
Acknowledgement vi List of Tables ix List of Figures x Abstract xi 1.0 INTRODUCTION
1.1 Background of the Study 1.2 Problem Statement 1.3 Research Questions 1.4 Research Objectives 1.5 Significance of Study 1.6 Scope of Study
1.7 Organization of the Study 2.0 LITERATURE REVIEW
1 2 3 3 3 4 4
2.1 Introduction 6 2.2 Personal Financial Planning 6
2.3 Theory of Planned Behavior 7 2.4 Financial Knowledge and Financial Behavior 8
2.5 Financial Attitudes and Financial Behavior 9
2.6 Theoretical Framework 11 2.7 Research Hypothesis 11
2.8 Conclusion 12 3.0 RESEARCH METHODOLOGY
3.1 Introduction 13 3.2 Sampling 13 3.3 Questionnaire Design 13
3.4 Procedure for Data Analysis 14 4.0 RESULTS AND DISCUSSION
4.1 Introduction 1"
4.2 Reliability Test 1 6
4.3 Demographic Profile of Respondents *"
4.3.1. Gender, and Age *' 4.3.2. Programs and Parts *' 4.3.3. Parents Income * ^
4.3.4. Working Experience *"
4.3.5. Personal Finance Class/Seminar 2 0
4.4 Descriptive Statistics 2 1
4.5 Regression Analysis 2 1
4.6 Conclusion 2 2
vii
5.0 CONCLUSION AND RECOMMENDATIONS 5.1 Conclusion
5.2 Recommendations REFERENCES/BIBLIOGRAPHY RESEARCH OUTCOMES
APPENDICES
Appendix I - Sample Questionnaire
Appendix II - Conference Proceeding and Papers
viii
ABSTRACT
Financial management is very important to secure a good quality of life. People must plan for long-term investments for their retirement and children's education. They must decide on short-term savings and borrowing for a vacation, a down payment for a house and a car loan. Therefore, to make a good financial decision, we must have a proper financial planning and basically we need to start at a young age. Due to this, a study on personal financial behavior among students at Universiti Teknologi MARA Melaka was undertaken. The purpose of this paper is to highlight the impact of two independent variables (financial knowledge and financial attitude) on the dependent variable, personal financial behavior. Questionnaires were used to collect data and 143 students were involved as respondents. The collected data was then will be analyzed by using SPSS 20. Findings revealed that financial knowledge and financial attitude are significant predictors of students' personal financial behavior and it was concluded that financial knowledge has the most impact on the students' personal financial behavior. Recommendations for future research have also been put forth in this paper.
xi
